Open-source AI gets more compute from SpaceX
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Reflection — an Nvidia-backed open-source AI startup — signed a major compute agreement with SpaceXAI, securing immediate access to chips and hardware from the SpaceX Colossus 2 data center.
Why it matters: If open-source AI companies are going to compete with the frontier AI labs, they needs compute. Reflection is now getting it from the same source its competitors are.
Driving the news: After an initial ramp period, Reflection will pay SpaceXAI $150 million a month starting July 1, 2026, through 2029.
- The deal gives Reflection access to high-end reasoning GB300 chips and other hardware inside Colossus 2, expanding the compute available to train its models.
- Either company can end the deal with 90 days' notice after the first three months.
- The deal follows similar compute agreements. Both Anthropic and Google are expected to spend billions for access to Elon Musk's compute capacity.
Follow the money: It's a reminder that the AI boom's biggest players are increasingly investors, suppliers and customers to one another, often all at the same time.
- Nvidia invested $800 million in Reflection, which is now getting access to Nvidia chips purchased by SpaceX.
- Nvidia is helping fund its next generation of customers, while some startups are dodging the multibillion-dollar cost of building their own data centers by leasing compute from others.
Between the lines: Compute is the scarce resource fueling the AI race.
- Some investors have called Reflection the "DeepSeek of the West," The Wall Street Journal reported. The company is still training its models.
- Having more compute capacity while training its models could allow Reflection to compete more directly with frontier AI labs like OpenAI and Anthropic.
Zoom out: The deal comes amid a surge in interest surrounding open source models.
- Anthropic shut down access to its most powerful models after the Trump administration threatened to block access for foreign nationals, raising questions about who gets to control access to intelligence.
- Unlike closed models, open models can often be downloaded, inspected and modified. Many of the strongest open models now come from Chinese labs.
What they're saying: "Recent events highlight how important open source is to the AI ecosystem, with more nations and enterprises recognizing the risks and costs associated with exclusively depending on closed models," a Reflection spokesperson said.
